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- FTX owes its customers $1.6B BTC with only $1M available.
- The bankrupt firm has $5.5 billion in liquid assets and over $11.5 billion in liabilities.
- Last week, Alameda Research sued one of its creditors, Grayscale.
The monumental scandal surrounding the balance sheet of the bankrupt FTX crypto exchange is far from being over. In a stunning revelation, a crypto analyst on Twitter highlighted that while FTX owes its customers a staggering $1.6 billion worth of Bitcoin (BTC), it only has $1 million in BTC in its possession.
The FTX balance sheet is really something$1.6 billion worth of Bitcoin owed to customers, with only $1m there in realityRough NFA breakdown of what liquidators have found so far across all silos-$3.5b in 'liquid' coins-$1.7b cash-$800m 'illiquid' https://t.co/dDthjFWDvF… https://t.co/rvaFd0A78i pic.twitter.com/qckkb2yc02— db (@tier10k) March 7, 2023
The shocking news came to light after an audit of the FTX balance sheet uncovered a massive shortfall in the amount of Bitcoin held by the now-defunct exchange.
The analyst also provided a rough breakdown of the findings, revealing that the exchange has $3.5 billion in supposed liquid coins, $1.7 billion in cash, and $800 million in illiquid assets. In sum, FTX holds $5.5 billion in supposed liquid assets and over $11.5 billion in customer liabilities.
The news has sent shockwaves through the crypto industry, with many experts questioning how FTX could have gotten into such a dire financial situation.
Last Friday, the FTX sister firm, hedge fund Alameda Research, sued asset manager Grayscale Investments as part of its efforts to recover funds from FTX creditors. According to the FTX debtors, Grayscale was preventing shareholders in Grayscale’s Bitcoin and Ethereum Trusts from redeeming their shares and charging exorbitant management fees.
The lawsuit asked the court to intervene to realize over a quarter billion dollars in asset value for the FTX debtors, customers and creditors, and unlock $9 billion or more in value for shareholders of the trusts. However, Grayscale responded to the allegations by calling the Alameda complaint “misguided.”
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